Colorado’s population is aging

March 11, 2026•4 min read

Colorado’s population is aging: Will it impact the housing market?

Colorado has long been one of the nation’s youngest states. But as years pass and residents who moved here decades ago celebrate more birthdays, the tide is shifting.

Now, though still a relatively young state, the share of older Coloradans is growing rapidly.

Between 2010 and 2020, the number of Coloradans age 65+ grew at the second-fastest rate in the nation, according to recent data from the U.S. Census Bureau and the Colorado State Demography Office.

The growth is expected to continue. A report from the Common Sense Institute projects that by 2050, the number of households aged 65 or older will increase by nearly 58%. That would mean 41% of the state’s current 2.34 million households would be led by someone in that age group.

Popular place to retire

The fact is, many Colorado residents choose to stay in their homes after retiring. Rather than selling, they often remodel to accommodate aging-in-place needs.

It’s not surprising. Colorado is a popular retirement destination, ranking fourth nationwide in WalletHub's 2026 analysis. The state is noted for its taxpayer-friendliness and ranks 19th in affordability.

That’s great news: We’re fortunate to be a desirable home for these longtime citizens. Our communities benefit from their wealth of knowledge, experience, mentorship, and contributions through volunteer work, civic engagement, consumer spending, and employment.

Yet it’s important to recognize that changing demographics are creating a significant shift in the housing landscape. Several factors point to even fewer homes available for sale.

Most older homeowners expect to age in place

Many Coloradans are choosing to age in place — a preference that’s not unique to Colorado. A nationwide survey by Fannie Mae found that 56% of older homeowners said they would never sell. Another 27% said they might, while just 17% said they sold their home or plan to.

Survey respondents listed emotional and financial reasons:

·They love their home.

·They feel comfortable in the area.

·Their home is paid off, or nearly paid off.

·Almost 50% said their home’s equity is security for unexpected expenses.

·62% said they plan to leave their home to their heirs.

Rise in inherited real estate

Inheritance has always played a part in real estate, and that role has grown recently. About one in eight homes that changed hands in Colorado last year were inherited, according to data from the real estate research firm Cotality. That represents almost 12% of all total property transfers.

Decades of price growth have contributed to the value of holding onto your asset or passing it to family members. In Boulder County, real estate has proven to be a wealth generator.

Legislation aims to expand housing

Even without aging-in-place trends, Colorado and Boulder County face a housing shortage. Though inventory levels have improved since the pandemic, this is a significant contributor to the Boulder County real estate landscape, where limited inventory has persisted for years.

To help alleviate the challenge, state lawmakers passed multiple measures to increase housing supply.

“Construction defect and middle market housing” House Bill 1272 addresses long-standing barriers to condo construction, encouraging the building of more affordable homeownership opportunities.

“Accessory Dwelling Units” (ADUs) House Bill 1152 enables homeowners to build ADUs, making it easier to create legal, long-term housing options. It allows homeowners to build additional housing units on their properties, blocking many existing local regulations, and creates grant and loan programs to help low- and moderate-income homeowners finance construction. In Boulder County, size limits vary, but detached ADU limits are typically 800–900 sq. ft., while attached units are up to 1,000 sq. ft.

“Sustainable Affordable Housing Assistance” Senate Bill 174 requires most local governments with populations of at least 1,000 to assess their communities’ housing needs, identify areas at elevated risk of displacement, and publish a report by November 2027 and every six years.

Bottom line

With a larger share of homeowners not selling their homes in retirement, housing inventory will likely remain constrained.For buyers, tight inventory makes the homebuying process more challenging. For homeowners approaching retirement, it may raise questions about whether to stay or explore new housing. A knowledgeable Realtor® can help you evaluate your options.

Jay Kalinski

Jay Kalinski is an experienced Realtor, lawyer, and veteran of the U.S. Air Force. Jay grew up in and around Boulder, Colorado, obtained his undergraduate degree from the University of Colorado at Boulder and his J.D. from the University of California, Berkeley Law School, and his MBA from the University of Colorado. Jay is the owner of RE/MAX Elevate and RE/MAX of Boulder and leads the Kalinski Team, which has decades of experience helping people buy and sell real estate along the Front Range.